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Calculate the gross profit rate and the profit margin. (Round answers to 1 decimal place, e.g. 15.2%) Gross profit rate Profit margin 2 842 % %

Calculate the gross profit rate and the profit margin. (Round answers to 1 decimal place, e.g. 15.2%) Gross profit rate Profit margin 2 842 % %

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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**Income Statement Data Analysis** For the year ended June 30, 2025, The Clorox Company reported the following condensed financial data (in millions of dollars): - **Sales Revenue:** $3,990 - **Cost of Goods Sold:** $1,995 - **Salaries and Wages Expenses:** $350 - **Depreciation Expense:** $70 - **Interest Expense:** $140 - **Advertising Expense:** $350 - **Sales Returns and Allowances:** $192 - **Research and Development Expense:** $70 - **Income Tax Expense:** $232 - **Loss on Disposal of Plant Assets:** $35 - **Rent Expense:** $70 - **Utilities Expense:** $35 Assume a tax rate of 34%. **Financial Calculations:** - **Gross Profit Rate:** - This is calculated as a percentage representing the ratio of gross profit to sales revenue. - **Profit Margin:** - This percentage indicates the portion of sales revenue that translates into profit. (The document provided specific placeholder values for these calculations of "2%" and "842%", however, these appear to be incorrect or placeholders for illustrative purposes. Please ensure accurate calculations based on the given data.) No graphs or diagrams are included in this image.
Transcribed Image Text:**Income Statement Data Analysis** For the year ended June 30, 2025, The Clorox Company reported the following condensed financial data (in millions of dollars): - **Sales Revenue:** $3,990 - **Cost of Goods Sold:** $1,995 - **Salaries and Wages Expenses:** $350 - **Depreciation Expense:** $70 - **Interest Expense:** $140 - **Advertising Expense:** $350 - **Sales Returns and Allowances:** $192 - **Research and Development Expense:** $70 - **Income Tax Expense:** $232 - **Loss on Disposal of Plant Assets:** $35 - **Rent Expense:** $70 - **Utilities Expense:** $35 Assume a tax rate of 34%. **Financial Calculations:** - **Gross Profit Rate:** - This is calculated as a percentage representing the ratio of gross profit to sales revenue. - **Profit Margin:** - This percentage indicates the portion of sales revenue that translates into profit. (The document provided specific placeholder values for these calculations of "2%" and "842%", however, these appear to be incorrect or placeholders for illustrative purposes. Please ensure accurate calculations based on the given data.) No graphs or diagrams are included in this image.
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